Allfunds: Launching Coverage of Allfunds With Fair Value Estimate of EUR 7.2 and Narrow Moat Rating

We are launching coverage of Allfunds with a fair value estimate of EUR 7.2 per share and a narrow moat rating. Allfunds is a fund distribution platform connecting fund houses and distributors, creating a single access point for both sides to gain a wider reach with regard to assets under administration and fund variety, respectively. As of 2022, Allfunds had EUR 1.3 trillion in assets under administration stemming from about 860 distributors on its platform. In return, distributors gained access to about 139,000 funds from 3,000 different fund houses. Allfunds also provides ancillary services to both fund houses and distributors covering the marketing, distribution, legal, regulatory, as well as data and analytics needs arising in the fund distribution space. Allfunds derives the majority of its revenue from Italy, Spain, and France. We initiate coverage with a Standard capital allocation rating and High Uncertainty Rating.